New documents obtained by ET show that adult film star Danica Dillon -- who was seeking $500,000, alleging that Duggar caused her "physical and emotional injuries" during past sexual encounters -- has agreed to bear her own legal costs, drop the suit against Duggar, and not refile at a later date.

In January, a judge denied Duggar's motion to dismiss the lawsuit filed by Dillon, whose real name is Ashley Stamm-Northup, saying: "We decline to grant Duggar's motion to dismiss at this early stage of litigation where Stamm-Northup alleges Duggar treated her roughly, caused physical injuries, and she felt 'as if she was being raped.'"

In his January motion, Duggar stated that he did in fact have sex with Dillon for money on two occasions.